Broadcaster GMA Network, Inc. (GMA) reported strong financial results for the third quarter owing to increased advertising sales across its major revenue platforms.
Consolidated gross revenues for the third quarter of 2012 reached P3.822 billion, reflecting a 13-percent growth from P3.384 billion a year earlier, while net income rose 9 percent to P573 million from P525 million.
The increase in Q3 earnings was driven mainly by the substantial growth in airtime revenues, up by 14 percent or P443 million to P3.537 billion year-on-year.
This brought the company’s total gross revenues in the first nine months P10.612 billion, an increase of 5 percent or equivalent to at least half-a-billion pesos year-on-year.
GMA’s airtime revenues grew 5 percent to P9.739 billion from P9.253 billion.
Flagship Channel 7 posted a 5 percent increase in airtime sales, while leading local news channel GMA News TV grew its advertising revenues by 24 percent.
Regional TV, on account of its aggressive expansion efforts, also improved its revenues from national and local sales by 24 percent. Radio, on the other hand, increased its earnings and surpassed last year’s solid performance by 4 percent.
GMA chairman and CEO Atty. Felipe L. Gozon said management is pleased with the company’s third quarter financial performance, and expects sustained revenue growth as political ads are expected to come on stream in the last quarter.
“Given the third quarter figures, we are optimistic that the fourth quarter will bring even better financial results as we expect political ads to further boost our earnings for the year,” Gozon said.
In a press conference on Wednesday, Gozon explained that political candidates are realizing the importance of political advertisements in television, citing that the Philippines has about 94 percent television penetration rate.
“I think the candidates realize that television is a very penetrating and important promotional aspect of their candidacy. Even now, before campaign period starts, more knowledgeable candidates are utilizing their political advocacies,” he said.
For his part, GMA president and chief operating officer Gilberto Duavit, Jr. disclosed that the television giant is expecting about P2.3 billion in net income for this year—a leap from last year’s P1.7 billion net income.
“We are very, very optimistic [for 2013] which is an election year. The revenues in May from the political revenues will be approximating that of 2010,” Gozon added.
GMA’s CEO added that the company also expects to exceed this year's target net income in 2012